“Right-sizing” is the phrase we’re seeing everywhere. It shows up in press releases, earnings calls, and quiet shop-floor conversations. What it really means is this: people are losing jobs, SKUs are being cut, investments are being delayed, and operations are trimming the fat after growing too fast or planning too optimistically.
That’s the visible side. What it should mean is something more disciplined—adjusting your business to match the reality of the market, no more, no less.
This shift should not come as a surprise.
Earlier this year, I wrote in The Shooting Wire that summertime demand would fall to about 38 percent of what the market saw in February and March. That prediction held. The shops and manufacturers that saw the signs made early adjustments. They trimmed expenses, slowed hiring, and prepared for a summer slowdown. Those who did not are now scrambling to fix bloated budgets and excess overhead.
Hanging onto Q1 expectations will only delay what needs to happen. What looked like a strong start in January and February turned into a mirage by June. Revenue targets were missed. Inventory piled up. The customers did not walk through the door like they used to.
Failing to act quickly when signs point down does more than hurt cash flow. It chips away at your flexibility. The longer you wait, the fewer good options remain.
The current slowdown is not just about tariffs or threats of higher prices. The market is still dealing with the COVID hangover. Commodity calibers like 9mm, .223, and 5.56 are down roughly 40 percent from recent highs. There is no shortage of product. Shelves are full. Warehouses are packed. Every segment of the supply chain is saturated.
A price war is in full swing
Distributors are cutting prices to move aging inventory, and retailers are watching margins shrink. Customers are still buying, but only when the price feels like a steal. There has to be a compelling offer. Otherwise, they walk. Many gun owners stocked up during the pandemic. They said, “I’ll never run out of 9mm again,” and filled their garages. That stock only moves when the price is too good to pass up.
Conflict overseas might suggest that input costs should rise and scarcity should follow. That has not happened, and I do not see this impacting demand. The domestic customer holds the power right now, and their wallets are tighter than they used to be.
So, what can you do?
Start by right-sizing more than just your payroll or product lineup. You have to right-size your mindset. Below is a short action list for every store owner trying to stay healthy through the back half of the year:
1. Cut to the Core
Look at your inventory with a cold eye. If a product has not turned in 90 days, it is time to discount, bundle, or move it. Free up cash. Stick with products that earn their place on the shelf. Remove anything that relies on wishful thinking.
2. Know Your Numbers
Do not guess. Pull real reports. Review sales by SKU, margin by category, and return rates. Focus on what turns and what earns. Make sure your staff knows which products matter most to the bottom line.
3. Be mindful with labor
Your team is one of your most important investments — and often your largest fixed cost. When foot traffic slows, be proactive: adjust hours or shift schedules to match demand. If downsizing becomes necessary, approach it with transparency, and compassion. A lean, well-supported team will typically outperform a larger one that isn’t fully utilized.
4. Rebuild Customer Connection
Spend more time on the floor. Greet your regulars. Run events that bring value—range nights, cleaning clinics, and first-time buyer Q&As. When people feel welcome and seen, they show up more often. That is how loyalty gets built.
5. Simplify Your Message
Speak plainly. The customer wants clarity, not hype. Tell them what works and why. Make it easy for them to choose. That simplicity will win trust faster than any gimmick or technical sales pitch.
6. Partner Locally
Meet with your local range. Find another store nearby that serves a different segment. Pool your resources for an event, a flyer drop, or a community match. One store can host a gear demo while another runs a safety class. Sharing the load helps everyone succeed.
7. Prepare for the Next Cycle
No downturn lasts forever. When the market turns, the disciplined operators will have clean inventory, loyal customers, and better cash flow. Make decisions now that will leave you in a strong position next spring.
This cycle is different from the last. The customer is smarter, the inventory is heavier, and the margin for error is smaller. You cannot wait until Q4 to fix what is already off track.
You have to act now.
Right-sizing is not a sign of weakness. It is a sign of discipline. It is a commitment to protecting your team, your balance sheet, and your ability to serve the customer over the long haul.
Cut what does not earn. Keep what customers value. Invest in the relationships that bring them back.
That is how you outlast the cycle.
— Pete Brownell
Brownell is Chairman of the Board of Brownells. He is also chairman and CEO of Brownells parent company, 2nd Adventure Group.